Does CEO compensation impact patient satisfaction?

Kunle Akingbola, Herman A. van den Berg
  • Journal of Health Organization and Management, March 2015, Emerald
  • DOI: 10.1108/jhom-02-2013-0034

Does CEO compensation impact patient satisfaction?

What is it about?

One might expect that management compensation contain some pay for performance component. Our research suggests that this is not the case when considering hospital CEO compensation and patient satisfaction as a measure of performance. At least not in the case of acute care hospitals in Ontario, Canada.

Why is it important?

Prior research has generally focused on patient satisfaction as a variable explaining hospital profitability. Our research sets high patient satisfaction as the desired outcome instead of high profit, as we are interested in not-for-profit health care. The research is timely, as it sets a baseline with which to compare future research into the effects of introducing mandatory pay for performance in Ontario’s Excellent Care for All Act.


Herman van den Berg
Lakehead University

Hospital CEO compensation appears to be tied to the size of the hospital measured in terms of number of hospital beds. It is possible that hospital boards of directors, consisting primarily of local volunteers, may be inadequately prepared to manage the compensation of high-powered executives.

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